We are pleased to share the first installment of a three-part research presentation series: “The Case for Small Buyouts” by RCP Advisors, a subsidiary of P10, Inc. In this series, RCP Advisors taps into more than two decades of proprietary data and research focused on lower middle market transactions to explain why they believe small market buyouts have consistently delivered the highest returns in private equity. Part 1 outlines the observed structural advantages in small market buyout transactions that have historically helped lead to these higher levels of return. This initiative is a key part of our broader mission at P10 to drive innovation across alternative asset management and provide valuable insights that support long-term growth for our clients and partners. Read Part 1 to learn more about the unique strengths of small market buyouts: https://lnkd.in/eEcZJ5qG #PrivateEquity #LowerMiddleMarket #SmallBuyouts #InvestmentResearch
P10, Inc.’s Post
More Relevant Posts
-
I am pleased to share the first installment of a three-part research presentation series: “The Case for Small Buyouts” by RCP Advisors, a subsidiary of P10, Inc. Over two decades of proprietary data and research focused on lower middle market transactions support what we at P10 have long recognized: small market buyouts have historically been a driving force in delivering consistently high returns in private equity. In this series, RCP Advisors explores the structural advantages of small market buyouts and dives into the factors that contribute to these historically higher, more consistent returns. As we continue to invest in these insights and trends, I believe understanding the dynamics of this segment will be key to helping navigate private equity’s future. Read Part 1 here: https://lnkd.in/evHKu79b #PrivateEquity #LowerMiddleMarket
To view or add a comment, sign in
-
In the most recent RLI research from Rede Partners LLP, Lower mid-market and mid-market buyouts occupied the top two spots on LPs’ wish lists with 57% of LPs planning to increase their exposure. This paper from buyout shop RCP Advisors explores some of the structural advantages of small buyouts. Some of the key takeaways below: https://lnkd.in/eEcZJ5qG 🔹 Attractive Valuations: LMM buyouts (<$100M EV) trade at significant discounts to larger deals, offering higher valuation multiples at exit. 🤝 Less Competition: Small buyouts (<$10M EBITDA) face less competition, with only 18% acquired through full auctions. 💼 Lower Leverage: Smaller deals use less leverage, reducing risk and reliance on financial engineering. 📊 High Growth Potential: Smaller companies show significantly higher revenue and EBITDA growth rates. For <$100M EV deals, the median EBITDA CAGR is 12.2%, and revenue CAGR is 14.3%. 🔧 Operational Improvements: Smaller companies provide more opportunities for value creation through operational improvements, professionalization, and strategic initiatives. 🔍 GP-LP Alignment: Managers of smaller funds are more aligned with LPs, focusing on performance to generate carried interest, unlike larger funds where fees can overshadow performance. 💰 Capital Imbalance: The small buyout market presents a vast pool of opportunities with limited capital chasing these deals, creating favourable dynamics for investors.
To view or add a comment, sign in
-
Small buyouts are highly attractive for PE and independent sponsors: ✅ MORE OPPORTUNITY: 93% of private companies have between $10 million and $250 million revenue (111,371 targets) ✅ LESS COMPETITION: 85% of available PE capital is focused on large buyouts. ✅ BETTER VALUATION: lower middle market (LMM) deals with enterprise values (EV) under $100 million trade for a median of 6.3x vs median of 8.1x+ for deals with EVs north of $100 million. ✅ ARBITRAGE: by acquiring at an attractive entry point and enhancing revenue / EBITDA, much better opportunity for multiple expansion. ✅ PROPRIETARY SOURCING: 82% of deals with EBITDA under $10 million are acquired outside of full action processes (54% proprietary and 28% limited process). Also, median entry multiples for proprietary deals are .9x lower than deals acquired in auctions. ✅ LEVERAGE: debt to EBITDA multiples are lower (by 1x to 2x+) for LMM deals, providing for stronger balance sheets and more insulation from distress / higher rates. ✅ VALUE CREATION: greater opportunities to improve and scale smaller companies. ✅ GROWTH: revenue and EBITDA CAGRs (Compund Annual Growth Rate) are significantly higher for small buyouts. ✳️ At our LMM focused law firm Lippes Mathias LLP, our growing base of private equity and independent sponsor clients continue to execute on the small buyout strategy. Great article via the link has more details on the points highlighted above. PS, two great September independent sponsor conferences (both of which we are sponsoring) will focus on small buyout strategies / networking are the SBIA isponsor forum (Chicago) and the iGlobal isponsor forum (New York City). #independentsponsor #fundlesssponsor #searchfund #privateequity #smallbuyout #lowermiddlemarket #middlemarket #deals #acquisitions #sponsor #capital #enterprisevalue #EBITDA Lippes Mathias LLP Small Business Investor Alliance Stephanie McAlaine iGlobal Forum Anna Ivanova Roger Kowalski Sebastien Douville
To view or add a comment, sign in
-
Investing in Security and Success: Why 79th Commercial Three is the Smart Choice In the ever-evolving world of investments, finding a reliable and profitable opportunity is paramount. At 128 Wealth Business, we are proud to partner with 79th Commercial Three, a subsidiary of the Seventy Ninth Group, to offer a secure and lucrative investment option. This article delves into why 79th Commercial Three stands out as our top recommendation for investors, highlighting its security, impressive returns, and our trusted partnership. Click the link below to read more. If you would lie to discover more about the 79th group or any of our other products or services. Get in touch today and we will be happy to assist. #investment #financialgrowth
To view or add a comment, sign in
-
A more balanced approach, recognising the importance of both asset allocation and security selection, as well as market timing and transaction costs, is preferable.
To view or add a comment, sign in
-
Hi Potential Investors Are you looking for a MBO or LBO ? A management buyout (MBO) is a corporate finance transaction where the management team of an operating company acquires the business by borrowing money to buy out the current owner(s). An MBO transaction is a type of leveraged buyout (LBO) and can sometimes be referred to as a leveraged management buyout (LMBO). A leveraged buyout (LBO) is the acquisition of one company by another using a significant amount of borrowed money or debt to meet the cost of acquisition. I am working with a Japan –based company (locate in Singapore) mainly engaged in the provision of finance services such as Leverage Buyout (LBO) and working capital loan. Normal ticket size for LBO is S$10M-S$20M Happy to link you up with this Japan-based company for a kind consideration by providing me an LBO Deck of your company for submission to them and also signed a 5% Success Fee with me for providing you the M&A services. LBO Deck is normal business deck with 5 years Actual Financial Results on Annual Revenue and annual EBITDA (1 slide), 3 years Forecast in Annual Revenue and Annual EBITDA (1 slide), Valuation and justification of valuation (1 slide), Roadmap (1 slide), any IP of company (1 slide), Shareholder structure (1 slide) and Selling Majority stake (percentage) or 100% (1 slide) Best regards, Lawrence Ang CYBER GLOBAL VENTURES M: +65 97572244 E: lawrence@cyberglobalventures.com W: https://lnkd.in/f7s9tqV
To view or add a comment, sign in
-
Hi Potential Investors Are you looking for a MBO or LBO ? A management buyout (MBO) is a corporate finance transaction where the management team of an operating company acquires the business by borrowing money to buy out the current owner(s). An MBO transaction is a type of leveraged buyout (LBO) and can sometimes be referred to as a leveraged management buyout (LMBO). A leveraged buyout (LBO) is the acquisition of one company by another using a significant amount of borrowed money or debt to meet the cost of acquisition. I am working with a Japan –based company (locate in Singapore) mainly engaged in the provision of finance services such as Leverage Buyout (LBO) and working capital loan. Normal ticket size for LBO is S$10M-S$20M Happy to link you up with this Japan-based company for a kind consideration by providing me an LBO Deck of your company for submission to them and also signed a 5% Success Fee with me for providing you the M&A services. LBO Deck is normal business deck with 5 years Actual Financial Results on Annual Revenue and annual EBITDA (1 slide), 3 years Forecast in Annual Revenue and Annual EBITDA (1 slide), Valuation and justification of valuation (1 slide), Roadmap (1 slide), any IP of company (1 slide), Shareholder structure (1 slide) and Selling Majority stake (percentage) or 100% (1 slide) Best regards, Lawrence Ang CYBER GLOBAL VENTURES M: +65 97572244 E: lawrence@cyberglobalventures.com W: https://lnkd.in/f7s9tqV
To view or add a comment, sign in
-
Hi Potential Investors Are you looking for a MBO or LBO ? A management buyout (MBO) is a corporate finance transaction where the management team of an operating company acquires the business by borrowing money to buy out the current owner(s). An MBO transaction is a type of leveraged buyout (LBO) and can sometimes be referred to as a leveraged management buyout (LMBO). A leveraged buyout (LBO) is the acquisition of one company by another using a significant amount of borrowed money or debt to meet the cost of acquisition. I am working with a Japan –based company (locate in Singapore) mainly engaged in the provision of finance services such as Leverage Buyout (LBO) and working capital loan. Normal ticket size for LBO is S$10M-S$20M Happy to link you up with this Japan-based company for a kind consideration by providing me an LBO Deck of your company for submission to them and also signed a 5% Success Fee with me for providing you the M&A services. LBO Deck is normal business deck with 5 years Actual Financial Results on Annual Revenue and annual EBITDA (1 slide), 3 years Forecast in Annual Revenue and Annual EBITDA (1 slide), Valuation and justification of valuation (1 slide), Roadmap (1 slide), any IP of company (1 slide), Shareholder structure (1 slide) and Selling Majority stake (percentage) or 100% (1 slide) Best regards, Lawrence Ang CYBER GLOBAL VENTURES M: +65 97572244 E: lawrence@cyberglobalventures.com W: https://lnkd.in/f7s9tqV
To view or add a comment, sign in
-
Hi Potential Investors Are you looking for a MBO or LBO ? A management buyout (MBO) is a corporate finance transaction where the management team of an operating company acquires the business by borrowing money to buy out the current owner(s). An MBO transaction is a type of leveraged buyout (LBO) and can sometimes be referred to as a leveraged management buyout (LMBO). A leveraged buyout (LBO) is the acquisition of one company by another using a significant amount of borrowed money or debt to meet the cost of acquisition. I am working with a Japan –based company (locate in Singapore) mainly engaged in the provision of finance services such as Leverage Buyout (LBO) and working capital loan. Normal ticket size for LBO is S$10M-S$20M Happy to link you up with this Japan-based company for a kind consideration by providing me an LBO Deck of your company for submission to them and also signed a 5% Success Fee with me for providing you the M&A services. LBO Deck is normal business deck with 5 years Actual Financial Results on Annual Revenue and annual EBITDA (1 slide), 3 years Forecast in Annual Revenue and Annual EBITDA (1 slide), Valuation and justification of valuation (1 slide), Roadmap (1 slide), any IP of company (1 slide), Shareholder structure (1 slide) and Selling Majority stake (percentage) or 100% (1 slide) Best regards, Lawrence Ang CYBER GLOBAL VENTURES M: +65 97572244 E: lawrence@cyberglobalventures.com W: https://lnkd.in/f7s9tqV
To view or add a comment, sign in
-
Hi Potential Investors Are you looking for a MBO or LBO ? A management buyout (MBO) is a corporate finance transaction where the management team of an operating company acquires the business by borrowing money to buy out the current owner(s). An MBO transaction is a type of leveraged buyout (LBO) and can sometimes be referred to as a leveraged management buyout (LMBO). A leveraged buyout (LBO) is the acquisition of one company by another using a significant amount of borrowed money or debt to meet the cost of acquisition. I am working with a Japan –based company (locate in Singapore) mainly engaged in the provision of finance services such as Leverage Buyout (LBO) and working capital loan. Normal ticket size for LBO is S$10M-S$20M Happy to link you up with this Japan-based company for a kind consideration by providing me an LBO Deck of your company for submission to them and also signed a 5% Success Fee with me for providing you the M&A services. LBO Deck is normal business deck with 5 years Actual Financial Results on Annual Revenue and annual EBITDA (1 slide), 3 years Forecast in Annual Revenue and Annual EBITDA (1 slide), Valuation and justification of valuation (1 slide), Roadmap (1 slide), any IP of company (1 slide), Shareholder structure (1 slide) and Selling Majority stake (percentage) or 100% (1 slide) Best regards, Lawrence Ang CYBER GLOBAL VENTURES M: +65 97572244 E: lawrence@cyberglobalventures.com W: https://lnkd.in/f7s9tqV
To view or add a comment, sign in